- German Factory Orders jumped by 3.4% MoM in July, an upside surprise.
- On a yearly basis, Germany’s Factory Orders rose by 24.4% in July.
- EUR/USD keeps its range around 1.1870 despite upbeat German Factory data.
The German Factory Orders unexpectedly jumped in July, suggesting that the recovery in the manufacturing sector of Europe’s economic powerhouse is gaining momentum.
Contracts for goods ‘Made in Germany’ arrived at 3.4% on the month vs. -1% expected and 4.6% last, the latest data published by the Federal Statistics Office showed on Monday.
On an annualized basis, Germany’s Industrial Orders rose by 24.4% in the reported month vs. 26.5% previous and expected growth of 13.9%. The data outpaced expectations by a wide margin.
FX implications
The shared currency remains unimpressed by the upbeat German Factory Orders data, as EUR/USD hovers around 1.1870, down 0.11% on the day.
About German Factory Orders
The Factory orders released by the Deutsche Bundesbank is an indicator that includes shipments, inventories, and new and unfilled orders. An increase in the factory order total may indicate an expansion in the German economy and could be an inflationary factor. It is worth noting that the German Factory barely influences, either positively or negatively, the total Eurozone GDP. A high reading is positive (or bullish) for the EUR, while a low reading is negative.
